§ Mr. Austin Mitchellasked the Secretary of State for Social Services what rate of 564W retirement pension would be payable in November 1979 if pensions were linked only to the cost of living since 1974 and not to prices or wages whichever increased the more; and what total saving this represents to his Department over the amount payable under the joint tie over that period.
§ Mr. PrenticeIf the standard rate of retirement pension for a single person had been uprated on the same dates as the actual upratings in the period 1974 to 1978 but by reference to the movement of prices since the previous uprating instead of by the actual amounts, the rate obtaining in November 1978 would have been £16.25 a week. If the forecast of a 17.5 per cent. price movement between November 1978 and November 1979 were applied to that rate, the rate in November 1979 would be £19.10 a week.
If all long-term benefits had been similarly treated in 1974 to 1978 and were similarly treated in November 1979, expenditure on benefits over the six years 1974–75 to 1979–80 inclusive would have been about £6,900 million lower.
I assume that, in asking for this information, the hon. Member has in mind our intention to introduce legislation to provide that pensions and other long-term benefits shall, in future, be increased at least in line with the movement of prices. We have made it clear, however, that it is our intention, subject to the restoration of economic growth, to enable pensioners and other long-term beneficiaries to share in the increasing living standards of the country as a whole, and I remind the hon. Member that, between 1970 and 1974 under a Conservative Government, pensions increased closely in line with earnings although there was no statutory requirement that they should do so.